The following payments and receipts are related to land, land improvements, and buildings acquired for use...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. Fee paid to attorney for title search $3,600 a. b. Cost of real estate acquired as a plant site: Land 376,900 Building (to be demolished) 35,800 c. Delinquent real estate taxes on property, assumed by purchaser 21,200 d. Cost of tearing down and removing building acquired in (b) 5,900 Proceeds from sale of salvage materials from old bulilding 3,500* e. f. Special assessment paid to city for extension of water main to the property 14,100 g. Architect's and engineer's fees for plans and supervision 51,800 h. Premium on one-year insurance policy during construction 5,000 Cost of filling and grading land 20,700 J. Money borrowed to pay building contractor B83,800 k. Cost of repairing windstorm damage during construction 6,500 Cost of paving parking lot to be used by customers 17,900 m. Cost of trees and shrubbery pianted 10,600 n. Cost of floodlights installed on parking lot 1,200 o. Cost of repairing vandalism damage during construction 2,900 p. Proceeds from insurance company for windstorm and vandalism damage 7,100 7,100 P. Proceeds from insurance company for windstorm and vandalism damage 942,200 9. Payment to building contractor for new building 44,300 r. Interest incurred on building loan during construction 417* S. Refund of premium on insurance policy (h) canceled after 11 months Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Item Account Amount a. b. C. d. e. t. 9. h. j. k. 1. m. n. O. p. 9. r. 5. 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building 3. Since land used as a plant site improvements lose its ability to provide services, it lose their ability to provide services as time passes and are therefore depreciated. Land 4. What would be the effect on the current year's income statement and balance sheet if the cost of filling and grading land of $20,700 (payment (1)) was incorrectly classifled as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method. The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. Fee paid to attorney for title search $3,600 a. b. Cost of real estate acquired as a plant site: Land 376,900 Building (to be demolished) 35,800 c. Delinquent real estate taxes on property, assumed by purchaser 21,200 d. Cost of tearing down and removing building acquired in (b) 5,900 Proceeds from sale of salvage materials from old bulilding 3,500* e. f. Special assessment paid to city for extension of water main to the property 14,100 g. Architect's and engineer's fees for plans and supervision 51,800 h. Premium on one-year insurance policy during construction 5,000 Cost of filling and grading land 20,700 J. Money borrowed to pay building contractor B83,800 k. Cost of repairing windstorm damage during construction 6,500 Cost of paving parking lot to be used by customers 17,900 m. Cost of trees and shrubbery pianted 10,600 n. Cost of floodlights installed on parking lot 1,200 o. Cost of repairing vandalism damage during construction 2,900 p. Proceeds from insurance company for windstorm and vandalism damage 7,100 7,100 P. Proceeds from insurance company for windstorm and vandalism damage 942,200 9. Payment to building contractor for new building 44,300 r. Interest incurred on building loan during construction 417* S. Refund of premium on insurance policy (h) canceled after 11 months Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign. Item Account Amount a. b. C. d. e. t. 9. h. j. k. 1. m. n. O. p. 9. r. 5. 2. Determine the amount debited to Land, Land Improvements, and Building. Land Land Improvements Building 3. Since land used as a plant site improvements lose its ability to provide services, it lose their ability to provide services as time passes and are therefore depreciated. Land 4. What would be the effect on the current year's income statement and balance sheet if the cost of filling and grading land of $20,700 (payment (1)) was incorrectly classifled as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.
Expert Answer:
Answer rating: 100% (QA)
Tand C land fimprovmente Ruilding c other Acountes a 3600 412700 21200 5... View the full answer
Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Posted Date:
Students also viewed these accounting questions
-
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Finder?s fee...
-
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to...
-
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Finders fee...
-
Using the SEDAR database, find the most recent annual reports for two Canadian retailers (e.g., Loblaw, Rona, Danier Leather). Required: a. Based on the information provided in the companies audited...
-
Identify in which tier each of the following items belong. a. Database tier b. Application tier c. User tier ________ 1. DBMS ________ 2. Customer table ________ 3. Accounting software ________ 4....
-
Assume each of the variables set1 and set2 references a set. Write code that creates another set containing only the elements that are found in both set1 and set2, and assigns the resulting set to...
-
A sleeve bearing machine on a closed loop oil pumped lubrication system has bearing clearances that are close to specification, yet there is a vibration at exactly 1/2 operating speed. What can be...
-
Consider a two-period model with two firms, A and B. In the first period, they simultaneously choose one of two actions, Enter or do not enter. Entry requires the expenditure of a fixed entry cost of...
-
You are planning to retire in 30 years. You want to be able to spend $40,000 per year in retirement, adjusted for inflation (so you will spend the equivalent in each year of $40,000 in today's...
-
The Salida Salt Company is considering making a bid to supply the highway department with rock salt to drop on roads in the county during the winter. The contract will guarantee a minimum of 25,000...
-
"I made a bet [with the CEO of Walmart]: in 10 years we will be bigger than Walmart, based on the sales. Because if you want to have 10,000 new customers, you have to build a new warehouse and this...
-
Write short notes on: (a) Sin-bar, (b) Slip Gauge, (c) Combination set.
-
Explain the various techniques to perform a taper turning on a lathe.
-
Identify the common requirements for a valid common law marriage.
-
Describe the position of the federal government with respect to same-sex marriage and identify the form in which it is expressed.
-
What are the differences between shaper and planer?
-
What are some financial implications for a psychiatric hospital that is looking to add more services they provide?
-
Explain the term "Equivalent Units". Why are they calculated in process costing? [4 Marks] [minimum 350 words]
-
The net income reported on the income statement for the current year was $290,000. Depreciation recorded on equipment and a building amounted to $150,000 for the year. Balances of the current asset...
-
The following transactions were completed by Almeda Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $75,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market...
-
Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 20Y6: Based on the preceding...
-
Is an oscillating object in translational equilibrium?
-
How far above Farth's surface must a \(10,000-\mathrm{kg}\) boulder be moved to increase the mass of the Earthboulder system by \(2.50 \mathrm{mg}\) ? Assume the same ratio of energy change to mass...
-
Show that for small displacements the restoring force exerted on part 2 of the displaced string in Figure 15.14 is linearly proportional to the displacement of that part from its equilibrium...
Study smarter with the SolutionInn App